Jakarta. Despite airport reopenings, fears of prolonged travel disruptions still linger in the hotel industry.

Indonesian Hotel and Restaurant Association (PHRI) named Q3 and Q4 as crucial for the industry, citing school holidays and hikes in foreign travelers. Corporates also often hold events during this time, not to mention government activities. However, the industry recently faced a new challenge: Mount Anak Krakatau’s eruptions. Its ash spreaded to other parts of the country, including the capital Jakarta, even prompting closures at major airports.

PHRI Secretary-General Maulana Yusran admitted Tuesday that the eruptions had not taken a huge toll on the hotel industry, citing that the airport closure only lasted for two days.

“But we hope [the heightened eruptions] won’t happen again, let alone last even longer," Yusran said, adding that another disruption can be harmful on the industry. 

Airport closures can lead travelers to cancel trips, cut vacations short, or be forced to extend their stays because they cannot return home. The impact can be severe if the closure hits Soekarno-Hatta Airport, which also connects travelers to other parts of the country.

“Restoring air connectivity is a crucial factor in maintaining tourism growth momentum and hotel occupancy rates through the end of the year," Yusran said.

Impact from another travel disruption is expected to be bigger as the Soekarno-Hatta Airport serves as the gateway for international tourists.

Yusran believes businesses can still mitigate some of these impacts by utilizing alternative modes of transport. For travelers heading to destinations within Java, trips can be rerouted via land transport.

The same applies to travel to Lampung, which remains possible via land routes and ferry crossings. However, these alternatives cannot fully replace air travel for journeys to more distant regions.

PHRI at the moment does not have the data on the financial losses from the Mount Anak Krakatau disruptions, according to Yusran. He added: “But I believe there is some impact on occupancy rate in certain regions”.

The Central Statistics Agency reported that the occupancy rate in star hotels reached 54.55% in July, up by 1.75 percentage points compared to the same period the previous year. Despite the growth, Yusran said that hotel revenue structures did not rely solely on occupancy, saying that food services linked to meetings also served as a crucial income stream.

"Occupancy is still growing, but in terms of revenue, we haven't been able to surpass the figures from 2025 or 2024," Yusran said.

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